UK Pension Calculator
Project your pension pot at retirement — personal and employer contributions, tax relief, and investment growth in GBP.
Project your UK pension pot
Auto-enrolment, AVCs and State Pension top-up
Annual snapshot
2026/27PLSA Retirement Living Standards are an industry body benchmark, not an official government source. Income is shown in today’s money.
Your retirement snapshot
A plain-English summary of how the projection works. All figures are estimates based on the inputs above and current rules under HMRC, the Pensions Regulator, and DWP.
Year-by-year projection
Compound growth based on your salary, contribution rates, and assumed return less fees. Inflation-adjusted "today's money" column applies a 2.5% CPI assumption.
| Age | Pot (nominal) | Annual contrib | Growth | Pot (today's £) |
|---|---|---|---|---|
| 36 | £39,500 | £2,861 | £1,639 | £38,537 |
| 41 | £65,227 | £2,861 | £2,747 | £56,245 |
| 46 | £97,288 | £2,861 | £4,128 | £74,147 |
| 51 | £137,241 | £2,861 | £5,848 | £92,449 |
| 56 | £187,030 | £2,861 | £7,992 | £111,355 |
| 61 | £249,076 | £2,861 | £10,664 | £131,072 |
| 66 | £326,397 | £2,861 | £13,994 | £151,812 |
| 67 | £344,010 | £2,861 | £14,752 | £156,101 |
Where contributions go
Breakdown of this year's pension input by source, with tax relief shown separately. Higher-rate and additional-rate taxpayers can claim extra relief through Self Assessment.
PLSA Retirement Living Standards
Annual income needed (after tax, excluding rent or mortgage) for three retirement lifestyles, published by Pensions UK (formerly the Pensions and Lifetime Savings Association), an industry body (not an official government source) — June 2026 update, read October 2026. Pot sizes are indicative figures from the 2025 update.
| Standard | One-person | Two-person | Pot needed (one-person, 2025 update) |
|---|---|---|---|
| Minimum Basics + 1 UK holiday, no car | £13,900 | £22,500 | ~£28,000 |
| Moderate Small car, 2-week European holiday | £32,700 | £45,400 | ~£410,000 |
| Comfortable 3-week holiday, kitchen replacements | £45,400 | £62,700 | ~£670,000 |
Adding voluntary contributions
See how an extra £100/month into AVCs or a SIPP changes the long-run picture. Contributions from income above £50,270 receive tax relief at the higher rate (40% in England, Wales and Northern Ireland), against 20% at the basic rate.
Auto-enrolment minimum
Including voluntary top-up
UK Pension Rates & Allowances
Auto-enrolment thresholds, State Pension rates, Annual Allowance, Lump Sum Allowance and tax-relief rules for the 2026/27 tax year — sourced from HMRC, DWP, MoneyHelper, and The Pensions Regulator.
Auto-Enrolment Minimums
Statutory minimums on qualifying earnings since 6 April 2019 — unchanged for 2026/27.
State Pension Ages
Currently 66, with legislated increases ahead.
Triple Lock Uplift
State Pension increase each April — the higher of three measures.
Auto-Enrolment Contribution Rules
All UK employers must enrol eligible workers into a qualifying workplace pension scheme. Minimum contributions apply to qualifying earnings — gross earnings between GBP 6,240 and GBP 50,270 in 2026/27 — though employers may choose more generous calculation methods.
Qualifying earnings band — minimum contributions
| Contribution | Rate | Notes |
|---|---|---|
| Employer (legal minimum) | 3.0% | Many employers contribute 5–10% as a competitive benefit |
| Employee (including basic-rate tax relief) | 5.0% | Net cost is 4% (relief at source) for basic-rate taxpayers |
| Total minimum | 8.0% | Of qualifying earnings only — not full salary |
Worker categories
| Category | Age & earnings | Treatment |
|---|---|---|
| Eligible jobholder | 22 to SPA, earning ≥ GBP 10,000 | Auto-enrolled — employer must enrol and contribute |
| Non-eligible jobholder | 16–74, earning GBP 6,240–10,000 or 16–21 / SPA–74 earning ≥ GBP 10,000 | Opt-in — entitled to employer contribution if they opt in |
| Entitled worker | 16–74, earning < GBP 6,240 | Voluntary join — no mandatory employer contribution |
Contribution base options
Employers can choose a different base than qualifying earnings (often more generous). The three certified bases are:
Common bases
- ▸Set 1 — Basic pay: contractual pay, often excludes overtime/bonus. Min 9% total (4% er, 5% ee).
- ▸Set 2 — Total earnings (≥85% basic): all earnings if basic pay ≥85% of total. Min 8%.
- ▸Set 3 — Total earnings: contributions on every pound. Min 7%.
Tax-relief methods
- ▸Relief at source: contributions deducted from net pay; provider claims 20% from HMRC.
- ▸Net pay arrangement: deducted before tax — relief is automatic at marginal rate.
- ▸Higher- and additional-rate taxpayers claim extra relief via Self Assessment.
UK State Pension
The State Pension is a regular government payment based on your National Insurance (NI) record. Two systems exist: the new State Pension for those reaching State Pension age (SPA) on or after 6 April 2016, and the basic State Pension for those who reached SPA before that date.
2026/27 weekly rates
| System | Weekly | Annual | Qualifying years |
|---|---|---|---|
| Full new State Pension | GBP 241.30 | GBP 12,548 | 35 NI years for full rate; min 10 years for any |
| Full basic State Pension | GBP 184.90 | GBP 9,615 | 30 NI years for full rate |
| Pension Credit (Standard Min Guarantee — single) | GBP 238.00 | GBP 12,376 | Means-tested top-up |
| Pension Credit (Standard Min Guarantee — couple) | GBP 363.25 | GBP 18,889 | Means-tested top-up |
State Pension age
| Born | State Pension age | Notes |
|---|---|---|
| 6 Oct 1954 – 5 Apr 1960 | 66 | Currently the standard SPA |
| 6 Apr 1960 – 5 Apr 1977 | 66 → 67 | Phased rise 2026–2028 |
| From 6 Apr 1977 | 68 | Phased rise 2044–2046; subject to periodic review |
Pension Allowances & Tax-Free Cash
The Lifetime Allowance was abolished on 6 April 2024. There is no longer a cap on the size of your pension fund — but tax-free cash is now controlled by the new Lump Sum Allowance and Lump Sum and Death Benefit Allowance.
Annual contribution limits (2026/27)
| Allowance | Limit | Trigger / scope |
|---|---|---|
| Annual Allowance (AA) | GBP 60,000 | Total pension input per year — employer + employee + tax relief |
| Money Purchase Annual Allowance | GBP 10,000 | Replaces AA for DC contributions once flexibly accessed pension income |
| Tapered Annual Allowance | Min GBP 10,000 | Reduces by GBP 1 for every GBP 2 of adjusted income above GBP 260,000 |
| Carry-forward window | 3 years | Unused AA from the 3 previous tax years can be carried forward |
Tax-free cash limits (lifetime)
| Allowance | Limit | Applies to |
|---|---|---|
| Lump Sum Allowance (LSA) | GBP 268,275 | Lifetime cap on tax-free cash (PCLS, small pot, trivial commutation lump sums) |
| Lump Sum & Death Benefit Allowance (LSDBA) | GBP 1,073,100 | Combined cap on tax-free lump sums plus tax-free death benefits before 75 |
| Overseas Transfer Allowance (OTA) | GBP 1,073,100 | Lifetime cap on transfers to a Qualifying Recognised Overseas Pension Scheme (QROPS) |
| Tax-free cash per pension | 25% | Up to the LSA cap. Above LSA, lump sums taxed at marginal rate |
Income tax bands (2026/27)
| Band | Threshold (GBP) | Rate | Tax relief on contributions |
|---|---|---|---|
| Personal Allowance | 0 – 12,570 | 0% | Relief at source provides 20% boost regardless |
| Basic rate | 12,571 – 50,270 | 20% | Automatic at source |
| Higher rate | 50,271 – 125,140 | 40% | Extra 20% claimed via Self Assessment |
| Additional rate | Above 125,140 | 45% | Extra 25% claimed via Self Assessment |
Key Dates & Recent Changes
| Date | Change | Impact |
|---|---|---|
| 6 April 2026 | State Pension uplift 4.8% under triple lock | Full new SP rises to GBP 241.30/week (GBP 12,548/year) |
| 6 April 2024 | Lifetime Allowance abolished | Replaced by LSA (GBP 268,275) and LSDBA (GBP 1,073,100) |
| 6 April 2023 | Annual Allowance raised to GBP 60,000 | From GBP 40,000 — MPAA also raised to GBP 10,000 |
| 6 April 2027 | Pensions within scope of Inheritance Tax | Most unused pension funds and death benefits become IHT-relevant |
| 6 April 2028 | Pension access age rises to 57 | Normal Minimum Pension Age (NMPA) up from 55 to 57 |
| 2026–2028 | State Pension age phased rise to 67 | Affects those born 6 April 1960 – 5 April 1977 |
UK Pension Figures at a Glance
State Pension rates, auto-enrolment thresholds, contribution allowances, and PLSA Retirement Living Standards for the 2026/27 tax year — sourced from gov.uk, HMRC, DWP, and the Pensions and Lifetime Savings Association.
UK pension figures over time
2020 – 2026/27Auto-enrolment contribution split
PLSA RLS — pot needed (one-person)
UK pension types at a glance
2026/27 figures| Pension type | How it works | Tax relief | Access age |
|---|---|---|---|
State Pension | Government payment based on NI record. Full new SP needs 35 qualifying years; 10 minimum | N/A | 66 (rising to 67) |
Workplace DC pension | Auto-enrolment minimum 8% of qualifying earnings (3% employer + 5% employee). Pot grows with investments | At marginal rate | 55 (→57 in 2028) |
Defined Benefit pension | Promised income based on salary and service years. Increasingly rare outside public sector | At marginal rate | Scheme-specific |
SIPP / Personal pension | Self-managed pension. Full investment control. Counts toward GBP 60,000 Annual Allowance | At marginal rate | 55 (→57 in 2028) |
Latest updates
UK Pension News & Policy Updates
Recent changes that affect this calculator, each summarised from its announcement and linked to the source.
State Pension Triple Lock to Be Kept Until Apr 2030, Then Adjusted With a Link to Earnings
The Prime Minister’s Office announced that the State Pension Triple Lock will be maintained until Apr 2030, after which the State Pension will rise by the higher of inflation or 2.5% each year, with a new link to keep pace with earnings over time. The Government will legislate for the change during this Parliament; the savings are to fund a new National Care Service.
Pension Schemes Act Becomes Law, Enabling Small Pot Consolidation and a Value for Money Framework
The Department for Work and Pensions (DWP) announced that the Pension Schemes Act has become law, without giving start dates for its measures. It will enable small pension pots to be consolidated automatically, introduces a Value for Money (VFM) framework, and gives Defined Benefit schemes greater flexibility to release surplus funds; in future, schemes will need to offer clear default retirement income options.
State Pension and Pension Credit Rise 4.8% for 2026–27; Universal Credit Standard Rate Up 6.2%
DWP announced that the full new State Pension rises by 4.8% for 2026–27, in line with average earnings, from GBP 230.25 to GBP 241.30 a week, and the Pension Credit Standard Minimum Guarantee also rises by 4.8%. The Universal Credit standard rate rises by 6.2%, and most other working-age benefits and benefits for people below State Pension age rise by 3.8%.
See all 14 Pensions & inheritance tax updates on UK Financial News & Updates
UK Pensions — Frequently Asked Questions
State Pension, auto-enrolment, allowances, tax-free cash, and access — verified against gov.uk, HMRC, DWP, MoneyHelper, and the Pensions Regulator (May 2026).
The full new State Pension for the 2026/27 tax year is GBP 241.30 per week, equivalent to GBP 12,548 per year. This applies from 6 April 2026 and represents a 4.8% increase from the 2025/26 rate of GBP 230.25 per week, in line with average wage growth under the triple lock.
The full basic State Pension (for those who reached State Pension age before 6 April 2016) is GBP 184.90 per week or GBP 9,615 per year.
gov.uk — New State PensionTo receive the full new State Pension, you need 35 qualifying years of National Insurance contributions or credits. To receive any new State Pension at all, you need a minimum of 10 qualifying years.
If you have between 10 and 35 qualifying years, your State Pension is calculated proportionally — for example, 20 qualifying years gives roughly 20/35 of the full rate. The full basic State Pension (pre-2016 system) requires 30 qualifying years.
gov.uk — NI RecordThe State Pension age in 2026 is 66 for both men and women. It is legislated to rise to 67 between 2026 and 2028 for those born between 6 April 1960 and 5 April 1977.
For those born on or after 6 April 1977, the State Pension age is set to rise to 68 between 2044 and 2046, subject to periodic review by the government. You can check your specific State Pension age using the gov.uk State Pension age calculator.
gov.uk — State Pension AgeThe triple lock is the formula used to uprate the State Pension each April. The increase is set at the highest of three measures:
- CPI inflation in September of the previous year
- Average Weekly Earnings (AWE) growth for May–July
- A floor of 2.5%
The 2026/27 uplift was 4.8%, in line with AWE growth between May–July 2025. The triple lock has been maintained by all governments since its introduction in 2010.
House of Commons Library — Benefits Uprating 2026/27Yes. If you have gaps in your National Insurance record, you can pay voluntary Class 3 contributions to fill them. Currently you can fill gaps going back to 2006/07 under an extended deadline.
Each additional qualifying year typically adds about 1/35 of the full new State Pension (around GBP 358/year in 2026/27). Voluntary contributions are particularly worthwhile if you have fewer than 35 qualifying years and time before reaching State Pension age. You can check your forecast at gov.uk before deciding whether to top up.
gov.uk — Voluntary NI ContributionsThe minimum total contribution to a UK workplace pension under auto-enrolment is 8% of qualifying earnings, split as:
- Employer minimum: 3%
- Employee minimum: 5% (including basic-rate tax relief)
This applies to qualifying earnings — gross earnings between GBP 6,240 and GBP 50,270 in 2026/27. Earnings below or above this band are not used for the minimum calculation, though employers can choose more generous bases (basic pay or full salary).
TPR — Earnings ThresholdsEmployers must auto-enrol workers who are classed as eligible jobholders — those aged 22 to State Pension age, working in the UK, and earning at least GBP 10,000 per year (the auto-enrolment trigger).
Workers aged 16–21 or between SPA and 74 earning above GBP 10,000, and those earning between GBP 6,240 and GBP 10,000, are non-eligible jobholders — they can opt in and still receive employer contributions. Workers earning below GBP 6,240 (entitled workers) can join voluntarily but are not entitled to a mandatory employer contribution.
DWP — AE Thresholds 2026/27Yes. You can opt out within one month of being enrolled — any contributions already made will be refunded. After this opt-out window, your contributions stay in the pension until you retire, but you can stop paying in.
Your employer is required to automatically re-enrol you every three years, after which you can opt out again. Opting out means losing the employer contribution (effectively turning down 3% or more of qualifying earnings) and giving up tax relief, so it permanently reduces your retirement income.
MoneyHelper — Auto-EnrolmentPension contributions receive tax relief at your marginal income tax rate, making them tax-efficient compared with saving from net pay.
- Basic rate (20%): A GBP 100 pension contribution costs GBP 80 net
- Higher rate (40%): A GBP 100 contribution effectively costs GBP 60
- Additional rate (45%): Effective cost GBP 55
Basic-rate relief is added automatically (relief at source) or applied before tax (net pay arrangement). Higher- and additional-rate taxpayers must claim the extra relief through Self Assessment.
HMRC — Pension Tax ReliefThe standard Annual Allowance is GBP 60,000 in 2026/27, unchanged since 6 April 2023 (when it was raised from GBP 40,000). This is the maximum amount of pension input — including employer contributions, employee contributions, and tax relief — that can attract tax relief in a single tax year.
Contributions above the Annual Allowance trigger an Annual Allowance charge at your marginal income tax rate, effectively clawing back the tax relief on the excess. Unused allowance from the previous three tax years can be carried forward.
HMRC — Annual AllowanceThe Money Purchase Annual Allowance (MPAA) is a reduced annual allowance of GBP 10,000 that replaces the standard GBP 60,000 limit on defined contribution (DC) pension contributions once you have flexibly accessed a DC pension.
Triggers include taking taxable income from a flexi-access drawdown account, taking an Uncrystallised Funds Pension Lump Sum (UFPLS), or buying a flexible annuity. Taking only the 25% tax-free cash (with no taxable income) does not trigger the MPAA.
HMRC — MPAAYes. The Lifetime Allowance (LTA) was officially abolished on 6 April 2024. There is no longer a cap on the total value of pension benefits you can build up.
However, two new allowances replaced it to control tax-free cash:
- Lump Sum Allowance (LSA): GBP 268,275 — the lifetime cap on tax-free lump sums
- Lump Sum and Death Benefit Allowance (LSDBA): GBP 1,073,100 — combined cap on tax-free lump sums plus tax-free death benefits before age 75
Lump sums above these caps are taxed at the recipient's marginal income tax rate.
MoneyHelper — Lump Sum AllowancesIf your adjusted income exceeds GBP 260,000 in a tax year, your Annual Allowance is reduced by GBP 1 for every GBP 2 of income above this threshold, down to a minimum of GBP 10,000.
"Adjusted income" includes total taxable income plus employer pension contributions. The tapered Annual Allowance is intended to limit pension tax relief for very high earners. The threshold income calculation is complex and a tax adviser is normally needed for accurate calculation.
HMRC — Pension Schemes RatesThe Normal Minimum Pension Age (NMPA) is currently 55, but it rises to 57 from 6 April 2028. Anyone reaching 55 before that date can still access their pension at 55 under existing rules (subject to scheme-specific protected ages).
The State Pension is separate — it can be claimed from State Pension age (currently 66, rising to 67 between 2026 and 2028).
MoneyHelper — Pension AccessYou can usually take up to 25% of each pension as a tax-free lump sum (called a Pension Commencement Lump Sum or PCLS), as long as the total across all pensions stays within the Lump Sum Allowance of GBP 268,275.
This means a single pension worth GBP 1,073,100 or less allows the full 25% tax-free. Above that pot size, the 25% tax-free portion is capped at GBP 268,275 — anything beyond is taxed at marginal income tax rates.
MoneyHelper — Tax-Free CashPension drawdown income (after the 25% tax-free portion) is taxed at your marginal income tax rate — combined with any other taxable income such as the State Pension or earnings.
For 2026/27, the bands are: 0% on the first GBP 12,570 (Personal Allowance), 20% from GBP 12,571 to GBP 50,270 (basic rate), 40% from GBP 50,271 to GBP 125,140 (higher rate), and 45% above GBP 125,140 (additional rate).
HMRC — Income Tax RatesPensions UK (formerly the Pensions and Lifetime Savings Association, PLSA) — an industry body, not a government or regulatory source — publishes annual Retirement Living Standards describing the cost of three lifestyles (excluding rent or mortgage). The June 2026 update:
- Minimum: GBP 13,900/year for a one-person household, GBP 22,500 for two-person
- Moderate: GBP 32,700 (one-person), GBP 45,400 (two-person)
- Comfortable: GBP 45,400 (one-person), GBP 62,700 (two-person)
Based on the 2025 update, to buy a level annuity producing the Moderate income, a one-person household needs roughly GBP 330,000–490,000 in pension savings (PLSA midpoint around GBP 410,000), assuming the full new State Pension. Comfortable requires roughly GBP 540,000–800,000.
Pensions UK — Retirement Living Standards, June 2026 (industry body, not an official source)Currently, most pension funds are outside the scope of Inheritance Tax (IHT) when paid as discretionary lump sums to beneficiaries. From 6 April 2027, this changes significantly: most unused pension funds and pension death benefits will fall within the IHT estate.
Death-in-service lump sums are excluded from this change. Pensions remaining outside IHT scope before April 2027 may still be passed tax-efficiently to nominated beneficiaries — typically tax-free if the pension holder dies before age 75, or taxed at the beneficiary's marginal rate after 75.
MoneyHelper — Pensions and IHTHow pension figures are derived from the official rates above.
Used for auto-enrolment minimum contributions.
Earnings below LEL (GBP 6,240) and above UEL (GBP 50,270) excluded from minimum calculation.
Combined employer + employee contributions.
Must not exceed Annual Allowance (GBP 60,000), or carry-forward applies.
Effective relief on employee + AVCs at marginal rate.
Basic rate (20%) is automatic. Higher (40%) and additional (45%) claimed via Self Assessment.
Partial new State Pension for fewer than 35 NI years.
Minimum 10 NI years required for any State Pension. Voluntary Class 3 contributions can fill gaps.
Compound growth less fund charges.
r = expected return, f = fund charges. Workplace charge cap is 0.75%.
25% of pension up to the Lump Sum Allowance.
Lifetime cap across all pensions. Excess is taxed at marginal income tax rate.
Important Disclaimer
For educational and informational purposes only. This calculator produces estimates based on the inputs provided and current UK pension rules for the 2026/27 tax year. The full new State Pension is GBP 241.30 per week (GBP 12,548 per year) from 6 April 2026. Auto-enrolment minimum contributions are 8% of qualifying earnings (3% employer + 5% employee), with a qualifying earnings band of GBP 6,240 to GBP 50,270 and an earnings trigger of GBP 10,000. The Annual Allowance is GBP 60,000, the Money Purchase Annual Allowance is GBP 10,000, the Lump Sum Allowance is GBP 268,275, and the Lump Sum and Death Benefit Allowance is GBP 1,073,100. The Lifetime Allowance was abolished from 6 April 2024. The Normal Minimum Pension Age is 55, rising to 57 from 6 April 2028. State Pension age is currently 66, rising to 67 between 2026 and 2028. From 6 April 2027, most unused pension funds and pension death benefits will fall within scope of Inheritance Tax.
No warranty of accuracy. While Money Snap takes reasonable care to source figures from official authorities (HMRC, DWP, MoneyHelper, The Pensions Regulator, gov.uk), this calculator is provided "as is" without any express or implied warranty as to accuracy, completeness, timeliness, or fitness for any particular purpose. Pension allowances, contribution thresholds, State Pension rates, and tax-free cash limits are reviewed and revised periodically by the UK government — figures shown may be out of date. Individual circumstances, contracted-out service, lifetime allowance protections, tapered annual allowance, salary sacrifice arrangements, and self-employed status not captured by the inputs may materially affect actual pension outcomes. Investment growth assumptions are illustrative only — past performance does not guarantee future returns and the value of investments can fall as well as rise.
Not financial advice. Information provided is general in nature only and does not take into account your personal objectives, financial situation, or needs. Results do not constitute financial, tax, or retirement-planning advice, and use of this calculator does not create an advisory relationship. Before acting on any figure shown, obtain personal advice from an FCA-regulated financial adviser, refer to MoneyHelper for free impartial guidance, or check your State Pension forecast and HMRC pension records at gov.uk for authoritative figures. Scheme-specific charges, investment options and benefits are set out in each pension provider’s key features document (or key information document) and annual benefit statement.
Limitation of liability. To the maximum extent permitted by law, Money Snap accepts no liability for any loss, damage, cost, or expense — direct or indirect — arising from reliance on this calculator or the information it produces. Users are responsible for verifying all figures with HMRC, DWP, and their pension provider before relying on them. Use of this calculator is subject to our Terms of Use.
Official data sources
Figures verified October 2026. New State Pension £241.30/wk applies from 6 April 2026. Auto-enrolment thresholds (GBP 10,000 trigger, GBP 6,240–50,270 qualifying earnings band) maintained for 2026/27.